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Milacron (MCRN) Misses Q3 Earnings, Revenues; Shares Fall
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Milacron Holdings Corp reported third-quarter fiscal 2016 adjusted earnings per share of 36 cents, a 3% decline from 37 cents in the year-ago quarter. Further, earnings fell short of the Zacks Consensus Estimate of 38 cents.
Including one-time items, the company reported earnings per share of 10 cents in the quarter as against a loss of 17 cents per share in the year-ago quarter.
Milacron’s share price has plunged 12% since the earnings announcement.
Operational Update
Milacron reported revenues of $292 million, a 0.2% dip year over year. Revenues missed the Zacks Consensus Estimate of $302 million. Excluding the impact of the CanGen acquisition and unfavorable impact of foreign currency, organic sales for the quarter slipped 1.1% from the prior-year period.
Cost of sales during the quarter inched up 1% year over year to $193 million compared with the prior-year quarter. Gross profit declined 2% year over year to $99.7 million with gross margin contracting 50 basis points to 34.1%.
Selling, general and administrative expenses slumped 13% year over year to $60 million. Milacron reported adjusted operating profit of $31.6 million, which surged 35% from $23 million in the year-ago quarter. Adjusted EBITDA edged up 0.6% to $54.3 million for the quarter from $54 million in the prior-year quarter.
Segment Results
Advanced Plastic Processing Technologies: Net sales dipped 1% year over year to $168.7 million. Excluding $1.2 million of unfavorable effects of currency movements, sales decreased 0.5% over the prior-year quarter. Adjusted EBITDA remained flat year over year at $21.5 million.
Melt Delivery and Control Systems: Net sales went up 4% year over year to $95.4 million. Excluding $0.9 million of unfavorable influence of currency movements, sales advanced 4.7% over the prior-year period. Adjusted EBITDA improved 5% to $30.6 million.
Fluid Technologies: Net sales declined 6% year over year to $28 million. Excluding $0.6 million of unfavorable effects of currency movements, sales slipped 4% over the prior-year period. Adjusted EBITDA decreased 12% to $5.9 million.
Financial Update
As of Sep 30, 2016, Milacron had cash and cash equivalents of $102.7 million compared with $67 million as of Dec 31, 2015. The company generated $61 million in cash from operating activities in the first nine month period of 2016 versus a cash usage of $5.7 million in the prior-year comparable period. Long-term debt was $933.6 million as of Sep 30, 2016, compared with $932 million as of Dec 31, 2015.
Outlook
Milacron projects 2016 sales to be between $1,170 to $1,175 million and adjusted EBITDA to lie in the range of $209 to $212 million. Capital expenditures are projected in a range of approximately $45 to $50 million, interest expense are likely to be approximately $60 million, and cash taxes are expected between $30 and $35 million. Effective tax rate will be approximately 30% and shares outstanding will be approximately 70 million.
ACCO Brands has witnessed a 4% increase in its earnings estimate to 85 cents for 2016. Casella Waste Systems has seen upward estimate revisions of 133% over the past 30 days and the Zacks Consensus Estimate is pegged at 7 cents. The Zacks Consensus Estimate for NN Inc. has also moved up 1% over the last 30 days to $1.69 per share.
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Milacron (MCRN) Misses Q3 Earnings, Revenues; Shares Fall
Milacron Holdings Corp reported third-quarter fiscal 2016 adjusted earnings per share of 36 cents, a 3% decline from 37 cents in the year-ago quarter. Further, earnings fell short of the Zacks Consensus Estimate of 38 cents.
Including one-time items, the company reported earnings per share of 10 cents in the quarter as against a loss of 17 cents per share in the year-ago quarter.
Milacron’s share price has plunged 12% since the earnings announcement.
Operational Update
Milacron reported revenues of $292 million, a 0.2% dip year over year. Revenues missed the Zacks Consensus Estimate of $302 million. Excluding the impact of the CanGen acquisition and unfavorable impact of foreign currency, organic sales for the quarter slipped 1.1% from the prior-year period.
Cost of sales during the quarter inched up 1% year over year to $193 million compared with the prior-year quarter. Gross profit declined 2% year over year to $99.7 million with gross margin contracting 50 basis points to 34.1%.
Selling, general and administrative expenses slumped 13% year over year to $60 million. Milacron reported adjusted operating profit of $31.6 million, which surged 35% from $23 million in the year-ago quarter. Adjusted EBITDA edged up 0.6% to $54.3 million for the quarter from $54 million in the prior-year quarter.
Segment Results
Advanced Plastic Processing Technologies: Net sales dipped 1% year over year to $168.7 million. Excluding $1.2 million of unfavorable effects of currency movements, sales decreased 0.5% over the prior-year quarter. Adjusted EBITDA remained flat year over year at $21.5 million.
Melt Delivery and Control Systems: Net sales went up 4% year over year to $95.4 million. Excluding $0.9 million of unfavorable influence of currency movements, sales advanced 4.7% over the prior-year period. Adjusted EBITDA improved 5% to $30.6 million.
Fluid Technologies: Net sales declined 6% year over year to $28 million. Excluding $0.6 million of unfavorable effects of currency movements, sales slipped 4% over the prior-year period. Adjusted EBITDA decreased 12% to $5.9 million.
Financial Update
As of Sep 30, 2016, Milacron had cash and cash equivalents of $102.7 million compared with $67 million as of Dec 31, 2015. The company generated $61 million in cash from operating activities in the first nine month period of 2016 versus a cash usage of $5.7 million in the prior-year comparable period. Long-term debt was $933.6 million as of Sep 30, 2016, compared with $932 million as of Dec 31, 2015.
Outlook
Milacron projects 2016 sales to be between $1,170 to $1,175 million and adjusted EBITDA to lie in the range of $209 to $212 million. Capital expenditures are projected in a range of approximately $45 to $50 million, interest expense are likely to be approximately $60 million, and cash taxes are expected between $30 and $35 million. Effective tax rate will be approximately 30% and shares outstanding will be approximately 70 million.
MILACRON HLDGS Price, Consensus and EPS Surprise
MILACRON HLDGS Price, Consensus and EPS Surprise | MILACRON HLDGS Quote
Zacks Rank
Milacron currently carries a Zacks Rank #4 (Sell). Some better-ranked industrial product stocks are ACCO Brands Corporation (ACCO - Free Report) , Casella Waste Systems Inc. (CWST - Free Report) and NN Inc. . All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
ACCO Brands has witnessed a 4% increase in its earnings estimate to 85 cents for 2016. Casella Waste Systems has seen upward estimate revisions of 133% over the past 30 days and the Zacks Consensus Estimate is pegged at 7 cents. The Zacks Consensus Estimate for NN Inc. has also moved up 1% over the last 30 days to $1.69 per share.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>